The Cabinet is likely to take up Seventh 7th Pay Commission recommendations for government employees on June 29.

Implementation of new pay scales recommended by the 7th Pay Commission is estimated to put an additional burden of Rs 1.02 lakh crore on the exchequer annually.

Finance Minister Arun Jaitley had in his Budget for 2016-17 provisioned Rs 70,000 crore towards Seventh Pay Commission awards, which is around 60 per cent of the incremental expenditure on salaries.

The Pay Commission’s recommendations are due from January 1, 2016.

The central government constitutes the pay commission every 10 years to revise the pay scales of its employees. The Commission was set up by the UPA government in February 2014 to revise remuneration of about 48 lakh central government employees and 55 lakh pensioners.

Prime Minister Narendra Modi on Monday directed the Finance Ministry to implement the 7th Pay Commission recommendations, results of which could be termed as a huge bonanza for lakhs of government employees.

The move will be cleared in the Cabinet meeting which will take place on Wednesday.

A total of 98 lakh employees — 47 lakh central government employees and 52 lakh pensioners — will benefit from the move.

The employees are likely to get a hike of 15-20 per cent.

The implementation of the new pay scales is estimated to put an additional burden of Rs 1.02 lakh crore on the exchequer in 2016-17. Subject to acceptance by the government, it will take effect from January 1, 2016.